In this article, we will take a look at the 12 best get rich quick stocks to buy. If you want to see more stocks in this selection, go to the 5 Best Get Rich Quick Stocks To Buy.
During times of high uncertainty, some experts recommend taking the short-term view instead of the long-term view to make quick money. The global economic developments taking place could propel stocks to bounce back from depressed levels and soar to new highs. Given the prevalent inflation rates hovering around a four-decade high, the Federal Reserve could be driven to increase benchmark interest rates aggressively to cool down the economy. The expectation of a rising benchmark interest rate makes the equity market very volatile with lower growth clarity, which is not favorable for stocks in the long term. However, it provides opportunities for investors to take advantage of the depressed stock prices and yield substantial returns in the near future.
On December 2, the US Department of Labor reported that 263,000 new jobs were created in November 2022, as opposed to a consensus forecast of 200,000 jobs only. Despite the Fed's repeated rate hikes, the labor market has been remarkably robust, creating 323,000 jobs on average over the past six months. Credit card interest rates are at an all-time peak and are still rising. The cost of auto loans is at an 11-year high, while a 15-year peak has been reached for home equity lines of credit. According to Greg McBride, chief financial analyst at Bankrate, the yields on online savings accounts and certificates of deposit haven't been this high since 2008. Stocks like PayPal Holdings, Inc. (NASDAQ:PYPL), Shopify Inc. (NYSE:SHOP), and Sea Limited (NYSE:SE) are also attracting hedge fund investment as investors look to protect their savings and earn strong returns.
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We have shortlisted these stocks based on positive short-term catalysts that could propel stock prices and yield healthy returns to investors. Some of the picks in this article are buy-on-the-dip calls, as these stocks have lost significant value in the past few months but still have a viable business model that could aid the stock price to bounce back. Meanwhile, some stocks are on the rise due to positive investor sentiments following favorable macroeconomic developments. The stocks have been ranked according to the level of hedge fund ownership as of Q3 2022.
Best Get Rich Quick Stocks To Buy
12. Niu Technologies (NASDAQ:NIU)
Number of Hedge Fund Holders: 9
Niu Technologies (NASDAQ:NIU) is a Changzhou, China-based manufacturer of electric scooters founded in 2014.
Niu Technologies (NASDAQ:NIU) stock has lost 68% of its value since the start of the year. Analysts think the stock is in a strong position for a bounce back following the ease of COVID-19-related restrictions in China. In a research note issued on December 5, Beatrice Lam at Citi gave Niu Technologies (NASDAQ:NIU) stock a target price of $6.70 with a Buy rating. The target price reflects a potential upside of over 32% from the closing price as of December 20. During the current period of high inflation, when people want to spend less on their commute, Niu Technologies enable this by offering various models of urban commuter bikes. The company's newest electric bike has a top speed of 28 miles per hour (mph) and a range of 40 to 60 miles.
As of Q3 2022, Niu Technologies (NASDAQ:NIU) was held by 9 hedge funds.
11. TopBuild Corp. (NYSE:BLD)
Number of Hedge Fund Holders: 19
TopBuild Corp. (NYSE:BLD) is a Daytona Beach, Florida-based company that is involved in the installation and distribution of commercial, industrial, and residential building and insulation materials.
As the US is experiencing a very harsh winter, the demand for insulation services is on the rise, playing in favor of TopBuild Corp. (NYSE:BLD). The positive development was reflected in Q3 2022 results as the company saw its revenue increase by 53.7% YoY to $1.3 billion, which surpassed the consensus forecast of $1.21 billion. Meanwhile, the adjusted EPS of $4.76 was 66 cents higher than the analysts’ forecast of $4.10. The positive results prompted the company to provide FY22 revenue guidance of $4.95 billion to $5 billion as compared to analysts’ forecast of $4.86 billion.
TopBuild Corp. (NYSE:BLD) was held by 19 hedge funds at the end of Q3 2022.
10. Saia, Inc. (NASDAQ:SAIA)
Number of Hedge Fund Holders: 19
Saia, Inc. (NASDAQ:SAIA) is a Johns Creek, Georgia-based logistics and less-than-truckload (LTL) trucking company.
Experts have a positive outlook on transportation stocks in 2023 as they see a bottom in the earnings cycle achieved in Q2 2023. The cycle is expected to be followed by a lengthy period of YoY growth. Based on this development, Amit Mehrotra at Deutsche Bank increased the target price for Saia, Inc. (NASDAQ:SAIA) from $281 to $296 and maintained a Buy rating on the stock. The target price reflects an upside potential of over 29% from the closing price as of December 20. The analyst has highlighted Saia, Inc. (NASDAQ:SAIA) stock as one of the top five picks from the transportation sector for 2023. Jack Hough at Barron’s has highlighted Saia, Inc. (NASDAQ:SAIA) as one of the stocks in the small-cap universe set for significant gains in the near future as the stock is trading at its lowest P/E ratio in years.
“Regarding purchases, we established a position in Saia, Inc. (NASDAQ:SAIA), a transport company the creates efficiencies by combining goods—from multiple shippers—that alone would fill “less than a full truckload.” Amid ongoing supply-chain challenges, we think Saia’s specialized logistics capabilities will be in especially high demand.”
9. H&R Block, Inc. (NYSE:HRB)
Number of Hedge Fund Holders: 24
H&R Block, Inc. (NYSE:HRB) is a Kansas City, Missouri-based company that provides tax preparation services.
H&R Block, Inc. (NYSE:HRB) has the distinction of preparing 800 million tax returns across the world since its inception. The company's competitive advantage grew more clear as robust cash flow generation in the latest quarter supported an appealing dividend and a degree of share repurchases uncommon in today's markets. Analysts confidently predict future sales growth and mid-single-digit EPS increase for H&R Block, Inc. (NYSE:HRB). H&R Block, Inc. (NYSE:HRB) is an ideal example of a high-quality company that trades at an attractive price and can provide downside protection in challenging equity markets. The stock offers a forward dividend yield of 2.93% as of December 20.
Here's what Miller Value Partners said about H&R Block, Inc. (NYSE:HRB) in its Q2 2022 investor letter:
“H&R Block (NYSE:HRB) was the top contributor for the quarter, gaining 36.0%. H&R Block reported 3Q22 revenue of $2.1 billion, +3.9% year-over-year (Y/Y), ahead of consensus of $1.9 billion, and Adjusted Earnings Per Share (EPS) of $4.11, unchanged from 3Q21 EPS, ahead of analyst expectations for EPS of $3.75. The company repurchased 10 million shares for $226 million in the quarter, bringing total fiscal-year 2022 (FY22) share repurchases to $550 million, representing 13% of the company’s shares outstanding. Management also increased its FY22 guidance for revenue of $3.38-3.43 billion, up 3.0% from prior guidance of $3.25-3.35 billion at the midpoint, and EBITDA of $850-875 million (Enterprise Value (EV)/EBITDA of ~8.4x), up 9.2% from prior guidance of $765-815 million at the midpoint. H&R Block’s new mobile banking platform, Spruce, which launched in January, has shown encouraging progress so far, accumulating 150k customer signups and $60 million in customer deposits as of 4/30/22.
8. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 26
UiPath Inc. (NYSE:PATH) is a New York-based corporation that is known for creating robotic process automation software.
Robotics is a key theme in the future that has received impetus due to the rollout of high-speed 5G connectivity. Terry Tillman at Truist sees UiPath Inc. (NYSE:PATH) stock offering a potential upside of more than 60% from the closing price as of December 20. In an update issued to investors on December 2, Mr. Tillman assigned UiPath Inc. (NYSE:PATH) stock a target price of $20 with a Buy rating after the company reported its preliminary Q3 2022 results and initiated a cost reduction program. The analyst highlighted that UiPath Inc. (NYSE:PATH) is making headways in improving its sales and annual recurring revenue (ARR) by transforming its go-to-market (GTM) strategy, innovations related to pricing and packaging, and developing new partnerships.
ARK Investment Management raised its stake in UiPath Inc. (NYSE:PATH) during Q3 2022.
7. United Microelectronics Corporation (NYSE:UMC)
Number of Hedge Fund Holders: 27
United Microelectronics Corporation (NYSE:UMC) is a Hsinchu, Taiwan-based semiconductor company with one of the biggest foundries in the world that supplies semiconductors to notable companies like Intel Corporation (NASDAQ:INTC), Qualcomm Incorporated (NASDAQ:QCOM), and Texas Instruments Incorporated (NASDAQ:TXN).
Taiwan is responsible for manufacturing more than 50% of the chips globally, and United Microelectronics Corporation (NYSE:UMC) is a notable player in the industry. The stock also offers an attractive one-year forward dividend yield of 6.78% as of December 20. United Microelectronics Corporation (NYSE:UMC) is experiencing a utilization rate of over 100% even after the company grew its fab capacity to 2.539 million 8-inch equivalent wafers as opposed to 2.383 million 8-inch equivalent wafers a year ago. United Microelectronics Corporation (NYSE:UMC) stock is trading at an attractive forward P/E multiple of 9.29x and hovering around a five-year low, making it a good stock to go long on.
Two Sigma Advisors increased its stake in United Microelectronics Corporation (NYSE:UMC) by 117% during Q3 2022.
6. Asbury Automotive Group, Inc. (NYSE:ABG)
Number of Hedge Fund Holders: 34
Asbury Automotive Group, Inc. (NYSE:ABG) is a Duluth, Georgia-based company that has the distinction of being one of the biggest automobile retailers in the US through its network of 140 dealerships spread across 15 states. Furthermore, the company has an online car-buying platform called Clicklane.
Asbury Automotive Group, Inc. (NYSE:ABG) is working on enhancing shareholder returns by allocating its resources to expand operations and aggressively buyback its stock as well. The dealership market is very fragmented, with 93.5% of the dealerships having a network of one to five locations only. Only 0.1% of the dealers have 50 or more locations. This provides a company like Asbury Automotive Group, Inc. (NYSE:ABG) the opportunity to grow its operations through the acquisition of smaller players. The auto dealership industry is transforming as more dealers are selling vehicles through online mediums, which offers an attractive avenue for expansion.
Bonhoeffer Capital Management shared its outlook on Asbury Automotive Group, Inc. (NYSE:ABG) in its Q3 2022 investor letter. Here’s what the firm said:
“One of our holdings in the distribution theme is Asbury Automotive Group, Inc. (NYSE:ABG), an automobile dealership firm. Asbury’s growth model is through same-store sales growth (4% per year), internet distribution (10% per year), and synergistic M&A (5% per year). These are enhanced by opportunistic operational leverage from scale and share repurchases (5% annual growth). Over the past 10 years, Asbury’s net income margins are up 120% with a 5x increase in revenues. These factors should lead to about a 20% EPS growth going forward. Ashtead has had 19% and 31% EPS growth over the past five and 10 years, respectively.
As can be seen below, a large portion of future growth is based upon the growth of internet sales. Both Asbury and Lithia have internet strategies which capture a younger demographic who do not visit dealerships with the same frequency as older folks. Asbury, through its online platform Clicklane, has found internet purchasers have very little overlap with existing customers; 95% are new customers. Asbury’s strategy is to target customers who are within 20 miles of an existing Asbury location vs. online only competitors (like Carvana) and Lithia. Asbury has had a per-store growth rate of 67% over the last year and only sells cars online in about 60% of its current footprint. This growth rate will decline going forward as the markets mature, but it will be bolstered as Clicklane is rolled out to the remaining 40% of Asbury’s footprint…” (Click here to read the full text)
In addition to Asbury Automotive Group, Inc. (NYSE:ABG), PayPal Holdings, Inc. (NASDAQ:PYPL), Shopify Inc. (NYSE:SHOP), and Sea Limited (NYSE:SE) are also some of the stocks attracting hedge fund investment currently.
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Disclosure. None. 12 Best Get Rich Quick Stocks To Buy is originally published on Insider Monkey.